Dollar wavers on U.S. tax overhaul worries, euro hits 12-day high
The dollar wobbled against its peers on Wednesday, edging further away from a 10-week high scaled recently amid speculation that President Donald Trump's tax overhaul plan would stall, with a buoyant euro adding further pressure.
The euro was 0.15 percent higher at $1.1824
The common currency slumped to a seven-week low of $1.1669 on Friday as stronger-than-expected U.S. wages data lifted the greenback.
But the euro has rebounded since, supported by upbeat euro zone economic indicators and a slight ebb in Catalonia concerns.
Following Monday's robust industrial output numbers, German data on Tuesday showed exports surged in August.
Catalan leader Carles Puigdemont on Tuesday proclaimed the region's independence from Spain but said the effects would be postponed to allow for talks, pushing up the euro.
"The Catalonian issue is likely to fade away as a market theme and speculators will find it harder to sell the euro in turn," said Yukio Izhizuki, senior currency strategist at Daiwa Securities.
"The dollar is also looking heavy against the euro due to uncertainty over U.S. tax issues. Squabbles surrounding Trump's efforts come as no surprise, but it is still not helping the dollar."
President Trump's public feud with Tennessee Senator Bob Corker has raised concern that his push for a tax-code overhaul could be harmed.
The dollar was down 0.15 percent at 112.300 yen
The dollar index against a basket of six major currencies extended overnight losses and was 0.1 percent lower at 93.187 (DXY), putting further distance between the 10-week peak of 94.267 scaled on Friday.
Against a broadly weaker U.S. currency the Australian dollar added 0.3 percent to $0.7802
The New Zealand dollar was 0.4 percent higher at $0.7097